MEMPHIS, Tenn. — More than one prominent investor has recently approached Fred’s Pharmacy with the intention of investing money in the operator of 601 locations in 16 states, according to the New York Post.
The Post posits the cash infusion from one or more sources would help Fred’s pay for and successfully operate the 865 divested Rite Aid stores it pledged to purchase for $950 million, which is a likely a closing condition should the Federal Trade Commission approve the proposed $9.7 billion Walgreens Boots Alliance-Rite Aid merger.
The FTC could require more Rite Aid stores be divested to give its blessing to the merger. In a news release issued Thursday announcing its 2016 fourth-quarter and full-year results, Fred’s issued the following statement: “Fred’s Pharmacy remains committed to purchasing additional assets, including up to 1,200 Rite Aid stores, to the extent necessary to obtain the FTC’s approval of the transaction.”
Fred’s added the addition of Rite Aid stores would be highly beneficial to the company. “The proposed acquisition of the stores, which are based in highly attractive markets, is a transformative event that will add substantial scale to the company and transform Fred’s Pharmacy, the largest regional pharmacy player, into an even stronger competitor and the third-largest drugstore chain in the nation,” the company said in the release. “The transaction will accelerate the Company’s healthcare growth strategy, generating considerable benefits for our customers, patients, payers, supplier partners, team members and shareholders.”
To view the Post report, click here.